Shaily Engineering Plastics Limited (SHAILY) AI Stock Analysis

• Market Cap: ₹87.89B
• Dividend Yield: 0.08%
• Average Volume (3M): 57.69K
• Price to Earnings (P/E): 57.2
• Beta (1Y): 1.52
• Revenue Growth: 31.18%
• EPS Growth: 99.37%
• Country: IN
• Employees: 629
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 11.20
• Shares Outstanding: 45,955,093
• 10 Day Avg. Volume: 150,960
• 30 Day Avg. Volume: 57,691
• PEG Ratio: 1.41
• Price to Book (P/B): 14.95
• Price to Sales (P/S): 10.41
• P/FCF Ratio: 194.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹1,965.00 ▼(-12.23% Downside)

Score is driven primarily by strong financial performance (solid growth, expanding margins, improving balance sheet, and positive free cash flow). This is meaningfully offset by weak technicals (downtrend across major moving averages with negative MACD) and a rich valuation (high P/E with minimal dividend yield).

Positive Factors

Revenue & Margin Expansion

Sustained double‑digit revenue growth coupled with materially higher gross and net margins indicates improving product mix, pricing power, and operational efficiency. This durable improvement enhances reinvestment capacity for tooling and capacity expansion and supports long‑term profitability resilience.

Balance Sheet Deleveraging

Lower leverage and a stable equity ratio strengthen financial flexibility, reducing refinancing risk and interest burden. This structural improvement supports capital allocation for new contracts and tooling, enabling the company to pursue growth without overreliance on external debt financing.

Improved Cash Generation

Conversion of earnings into positive free cash flow and operating cash exceeding net income signals healthier liquidity and internal funding for capex and working capital. Strong cash generation reduces dependency on external capital and supports sustained investment in program ramps.

Negative Factors

Input Cost Exposure (Resin)

Revenue and margins are exposed to volatile resin/raw material prices; prolonged input inflation can erode profitability if not fully passed through. For a contract manufacturer, limited pricing flexibility on long programs can make margins sensitive to commodity cycles unless hedging or long‑term supply agreements are used.

Regulatory & Qualification Burden

Serving regulated healthcare and pharma markets requires lengthy qualification, documentation, and compliance processes. These structural costs slow new program onboarding, raise fixed compliance overhead, and extend payback periods on tooling and process investments, constraining near‑term scalability.

Higher Business Volatility (Beta)

A beta above 1 indicates greater sensitivity of the business to economic and market swings, implying cyclical demand risk for OEM customers. Elevated volatility can complicate capacity planning, working capital management and increases the effective cost of capital for long‑lived tooling investments.

Shaily Engineering Plastics Limited Business Overview & Revenue Model

Company Description

Shaily Engineering Plastics Limited manufactures and sells precision injection moulded plastics components in India. The company offers plastic pumps, spray devices, insulin injector pens, specialty packaging, and containers for solid orals and liquid formulations used in the pharmaceutical industry; kitchen and cooking devices, storage and cleaning products, and plastic and plastic/electronic toys; and casings for cosmetics. It also offers automotive components and engineering plastics. The company exports its products to approximately 35 countries worldwide. Shaily Engineering Plastics Limited was incorporated in 1980 and is based in Vadodara, India.

How the Company Makes Money

Shaily Engineering Plastics Limited generates revenue primarily through the manufacturing and sale of engineered plastic products. The company operates on a business-to-business (B2B) model, supplying its products to various industries, which constitutes its key revenue stream. SHAILY benefits from long-term contracts and partnerships with major corporations in the automotive and consumer goods sectors, providing a steady flow of orders. Additionally, the company focuses on innovation and quality, enabling it to command premium pricing for its specialized products. Other revenue sources may include custom manufacturing services and technical consulting for clients looking to develop tailored solutions, further diversifying its income.

Shaily Engineering Plastics Limited Financial Statement Overview

Summary

Strong operating performance: revenue grew 22.6% in 2025 with improving profitability (gross margin up to 43.1%, net margin up to 11.8%). Leverage declined (debt-to-equity down to 0.34) and ROE improved to 17.0%. Cash flow is improving with free cash flow turning positive and operating cash flow exceeding net income (1.18x), though cash-flow strength trails the income statement.

Income Statement

The company shows strong revenue growth with a 22.6% increase in 2025 compared to the previous year. Gross profit margin is healthy, increasing from 36.9% in 2024 to 43.1% in 2025. The net profit margin also improved significantly from 8.9% to 11.8%. EBIT and EBITDA margins are solid, reflecting good operational efficiency. Overall, the income statement indicates strong growth and improved profitability.

Balance Sheet

The debt-to-equity ratio has improved from 0.46 in 2024 to 0.34 in 2025, indicating a reduction in leverage. The return on equity increased from 12.5% to 17.0%, showing enhanced profitability. The equity ratio remains stable at around 58.7% in 2025, reflecting a solid capital structure. The balance sheet is strong, with reduced leverage and improved returns.

Cash Flow

Free cash flow has turned positive in 2025, showing a significant improvement from negative figures in previous years, with a growth rate of over 1500%. Operating cash flow to net income ratio is 1.18, indicating effective cash generation from operations. The cash flow statement reflects improving liquidity and cash generation capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.54B	7.87B	6.44B	6.07B	5.68B	3.61B
Gross Profit	3.83B	3.33B	2.39B	1.86B	1.75B	1.21B
EBITDA	2.05B	1.75B	1.16B	936.72M	798.95M	594.07M
Net Income	1.17B	931.19M	572.91M	351.50M	352.66M	220.21M
Balance Sheet
Total Assets	0.00	9.33B	7.82B	6.93B	6.77B	4.67B
Cash, Cash Equivalents and Short-Term Investments	231.38M	231.38M	222.17M	275.21M	431.47M	9.82M
Total Debt	0.00	1.88B	2.09B	1.88B	1.75B	2.00B
Total Liabilities	-5.48B	3.85B	3.23B	2.91B	3.10B	2.85B
Stockholders Equity	5.48B	5.48B	4.59B	4.01B	3.67B	1.82B
Cash Flow
Free Cash Flow	0.00	420.46M	52.29M	-216.59M	-657.75M	-605.74M
Operating Cash Flow	0.00	1.10B	922.65M	899.81M	550.08M	224.60M
Investing Cash Flow	0.00	-713.26M	-938.22M	-1.01B	-1.29B	-819.07M
Financing Cash Flow	0.00	-418.72M	46.37M	-51.27M	1.08B	533.87M

Shaily Engineering Plastics Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2238.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHAILY, the sentiment is Negative. The current price of 2238.9 is above the 20-day moving average (MA) of 2069.77, below the 50-day MA of 2288.91, and above the 200-day MA of 2047.20, indicating a bearish trend. The MACD of -127.16 indicates Positive momentum. The RSI at 33.02 is Neutral, neither overbought nor oversold. The STOCH value of 16.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHAILY.

Shaily Engineering Plastics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEPL	69 Neutral	₹20.58B	12.13	―	4.47%	―	―
SHAILY	64 Neutral	₹87.89B	57.24	―	0.08%	31.18%	99.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MAHSCOOTER	61 Neutral	₹153.90B	42.04	―	1.57%	―	―
REFEX	60 Neutral	₹30.88B	18.36	―	0.19%	21.67%	25.86%
RHIM	59 Neutral	₹91.98B	54.12	―	0.55%	8.65%	―
MOL	45 Neutral	₹15.28B	38.52	―	―	―	―

Shaily Engineering Plastics Limited Corporate Events

Shaily Engineering Plastics Files Revised SEBI Demat Compliance Certificate

Shaily Engineering Plastics Limited has notified the stock exchanges that a previously submitted certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025 contained technical errors and has been replaced by a revised certificate issued by its registrar and transfer agent, Bigshare Services Pvt. Ltd. The revised filing confirms that all securities received for dematerialisation during the quarter were properly processed, listed on the relevant stock exchanges, and that physical certificates were duly mutilated, cancelled, and replaced by depository holdings within the stipulated timeframe, underscoring the company’s adherence to regulatory and compliance standards in the handling of its securities.

Shaily Engineering Plastics Limited Wins Best Exporter Award

Shaily Engineering Plastics Limited has been awarded the ‘Best Exporter of Engineering Components of Plastics’ for the fiscal years 2023-24 and 2024-25 by The Plastics Export Promotion Council (Plexcouncil). This accolade highlights the company’s dedication and strategic vision in achieving the highest number of engineering plastic component exports among Indian manufacturers, underscoring its strong market position and commitment to excellence.

Shaily Engineering Plastics Schedules Earnings Call for November 2025

Shaily Engineering Plastics Limited has announced an upcoming earnings call scheduled for November 10, 2025, to discuss its operational and financial performance for the quarter and half-year ending September 30, 2025. This call, involving key company executives, is an opportunity for analysts and investors to gain insights into the company’s recent performance, potentially impacting stakeholder perceptions and market positioning.